WESTPORT, Conn.--(BUSINESS WIRE)--Dec. 15, 2006--Terex Corporation
(NYSE: TEX) today announced that its Board of Directors has authorized
a share repurchase program, under which the Company may purchase up to
$200 million of the Company's outstanding common shares through June
30, 2008. Purchase may be made at the Company's discretion from time
to time in open market transactions at prevailing prices or through
privately negotiated transactions as conditions permit.
Additionally, Terex today announced that it will redeem all $200
million principal amount outstanding of its 9-1/4% Senior Subordinated
Notes due 2011, effective January 15, 2007. As set forth in the
indenture for these notes, Terex will pay holders 104.625 percent of
the principal amount plus accrued and unpaid interest up to the
redemption date. At September 30, 2006, the notes being called
represented $200 million of Terex's $792 million of long-term debt.
These notes were originally issued in December 2001.
Ronald M. DeFeo, Chairman and CEO of Terex, stated, "Terex
Corporation's strong financial position enables us to implement this
stock repurchase program. The decision to repurchase shares
demonstrates our commitment to enhancing shareholder value and our
confidence in the performance and future prospects of Terex." Mr.
DeFeo added, "In addition to implementing the share repurchase
program, we are pleased that we will achieve our announced goal of
prepaying $200 million in senior subordinated notes in January 2007.
Based on the prospects of continued strong operating results and cash
flow, we will continue to seek to further enhance shareholder value
through selective strategic initiatives."
The press release contains forward-looking information based on
Terex's current expectations. Because forward-looking statements
involve risks and uncertainties, actual results could differ
materially. Actual events or the actual future results of Terex may
differ materially from any forward looking statement due to those
risks, uncertainties and significant factors. The forward-looking
statements speak only as of the date of this release. Terex expressly
disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statement included in this
release to reflect any changes in Terex's expectations with regard
thereto or any changes in events, conditions, or circumstances on
which any such statement is based.
Terex Corporation is a diversified global manufacturer with 2005
revenue of $6.4 billion. Terex operates in five business segments:
Terex Aerial Work Platforms, Terex Construction, Terex Cranes, Terex
Materials Processing & Mining, and Terex Roadbuilding, Utility
Products and Other. Terex manufactures a broad range of equipment for
use in various industries, including the construction, infrastructure,
quarrying, surface mining, shipping, transportation, refining, and
utility industries. Terex offers a complete line of financial products
and services to assist in the acquisition of Terex equipment through
Terex Financial Services. More information on Terex can be found at
www.terex.com.
CONTACT: Terex Corporation
Tom Gelston, 203-222-5943
Director - Investor Relations
SOURCE: Terex Corporation